Strategy. February Outlook. Tiger, Tiger Burning Bright

Transcription

1 PP 10551/10/2010(025682) 2 February 2010 Chris Eng +60 (3) chris.eng@osk.com.my Lim Mei Ching +60 (3) Lim.meiching@osk.com.my Strategy February Outlook Tiger, Tiger Burning Bright MALAYSIA EQUITY Investment Research Daily News FBM KLCI (10 January) 1, , , , , , , , , , KLCI 4-Jan 9-Jan 14-Jan 19-Jan 24-Jan 29-Jan Opening at pts Closing at pts Crude Palm Oil (10 January) 2, , , , , , , , , CPO 4-Jan 9-Jan 14-Jan 19-Jan 24-Jan 29-Jan January was the first month since August 2009 in which the KLCI lost ground, in line with the sharp selldown on global equities on fears of early liquidity tightening. We have been highlighting such risks for the past 2 quarters. For February, a rebound may be in order given the anticipated strong results season and the CNY effect. We still believe governments will avoid too much tightening so early in 2010 and maintain our KLCI fair value of 1345 pts. Our February top buys reflect this, with small caps KPJ, Mudajaya, Lion Industries and Supermax looking ripe for a rebound while CIMB should also see strong earnings. Unexpected early tightening. While January started out as expected with a rally, the Chinese government s moves to raise the reserve requirements for its banks and set a limit for lending spooked the market with fears of early fiscal tightening. US President Obama s populist proposal to restrict banks from proprietary trading or investing in hedge funds also gave rise to fears of further measures to constrain bank profits. Concerns over the solvency of Greece and US corporate warnings of revenue outlook served to compound fears in January, which led to the worst month for global equities since March Banks and subsidies in the news. On the local front, the Government announced that subsidies on white bread and petrol would be withdrawn while prices of sugar would be raised. Banks also hogged the headlines, with Hong Leong making an offer of RM7.10 per EON Cap share while Alliance Bank s internal probe made further progress. Still, the local market was not spared the selldown with foreign selling on blue chips and local profit taking on small caps. More volatility ahead. While fears of early liquidity tightening will no doubt linger, we believe that the sharp selldown on the market in January presents a buying opportunity, especially ahead of what should still be a good results season in February. We may yet witness the CNY effect, during which the KLCI has historically staged a positive pre-cny rally in 10 out of the past 14 years. We will see a good set of numbers from banks, retailers and rubber glove makers. Thus we maintain our 1345 pts fair value for the KLCI. February top buys mainly small caps. Our January top buys also suffered from the profit taking, with only Supermax outperforming the KLCI while CIMB was in line. TNB did not secure its tariff hike, Mudajaya s placement price was below our expectation while KPJ was sold down after going ex-bonus and share split. Still, with CIMB, Mudajaya, KPJ and Supermax expected to turn in good results in February, we are keeping all 4 as our top buys, with the addition of Lion Industries, which is our top Buy in the steel sector. Stock Price Target Mkt Cap Volume PER (x) FY0 FY1 Rel. Performance % P/NTA Rating RM RM RMm 000 FY1 FY2 ROE % DY % 1-mth 3-mth 12mth (x) CIMB , , BUY Mudajaya , BUY Supermax , , BUY Lion Ind , BUY KPJ , , BUY Share price as at 29 Jan 2010, OSK Research See important disclosures at the end of this report 1

2 UNEXPECTED EARLY TIGHTENING Liquidity tightening fears start early. While January started out as a good month, as is traditionally the case and which we highlighted in our January outlook report, the limit imposed by the Chinese government on new lending in 2010 to USD1.1trn and its decision to raise the reserve requirements of its banks very quickly sapped the liquidity-driven market, resulting in a negative month for most global markets. Given that we had earlier cautioned that markets were over-valued and being propped up by liquidity, the falls did not surprise us. What did surprise, however, was that liquidity tightening started off this early in China. No doubt, the fact that China s economy grew some 10.7% in 4Q2009 and beat market expectations helped somewhat to spur some degree of tightening on the part of China s authorities. Meanwhile, the US markets were spooked by President Obama s proposal to restrict deposit holding banks from carrying out proprietary trading or investing in hedge funds, prompting investors to feel that banking profits going forward would be at risk. The view that President Obama s proposal was a populist move sparked by the loss of the Massachusetts senate seat left vacant by the death of Edward Kennedy, gave rise to fears of more populist actions that would eat into corporate profits in the US. Fears of government insolvency in Greece also spooked markets worldwide. Finally, although some 78% of US corporate earnings reported so far for 4Q09 have reportedly exceeded expectations, investors still largely sold the stocks on any news of revenue shortfall. We had earlier feared too that US corporate sales had failed to excite over the first 3 quarters of 2009 even as bottomlines had exceeded forecasts. Tech shares such as IBM, Microsoft and SanDisk provided guidance that their outlook was less than optimistic even as profits exceeded expectations. Asia in worst fall since March from 15-month highs. For Asia, with many markets having reached 15 month highs in the middle of January, the steep fall during the second half of the month was actually the worst for the MSCI Asia Pacific since March Although the weak economic news in the region were limited to Singapore, which saw its economy slip back into a contraction for 4Q09 and South Korea, which expanded less than expected in 4Q09, it was rather the good news from China that seemed to trigger the sell-off as news of export growth and further manufacturing strength led to concerns of more fiscal tightening in China. Although down some 1.0% on a total return basis, the KLCI once again proved its defensiveness in tough times as it posted the second best performance in the region, only behind Indonesia, which was the only major market to post a gain in January of 3.0%. The rest all suffered losses, led naturally by China (- 8.8%), Hong Kong (-8.0%) and Taiwan (-6.7%). Figure 1: TRs of regional indices TRs of Regional Indices TAIWAN TAIEX INDEX STRAITS TIMES INDEX SHANGHAI SE COMPOSITE INDEX STOCK EXCH OF THAI INDEX PSEI - PHILIPPINE SE IDX NIKKEI 225 KOSPI INDEX JAKARTA COMPOSITE INDEX HANG SENG INDEX FTSE MALAYSIA SMALLCAP FTSE MALAYSIA FLEDGLING FTSE MALAYSIA EMAS INDEX FTSE BURSA MALAYSIA 70 FTSE BURSA MALAYSIA 100 FTSE BURSA MALAYSIA KLCI -10% -5% 0% 5% 10% Total Returns Jan-09 Jan-10 YTD Source: Bloomberg Note: TRs (total returns), CG (capital gain) & DY (div yield) OSK Research See important disclosures at the end of this report 2

3 KLCI still battered by foreign selling. Despite the multi-year lows in foreign shareholding level, the KLCI still suffered from profit selling as investors exited the region on concerns of tightening liquidity. Index heavyweights such as banks and plantation counters suffered while some small caps, which had rallied strongly in December and early January such as the rubber glove counters were also bashed down. On the economic front, Malaysia s exports and industrial production slipped back into contraction from a year earlier after gaining in October while the central bank hinted of upcoming interest rate hikes even as it kept the Overnight Policy Rate (OPR) steady at 2%. Our house view remains that a hike in the OPR will likely happen only in 2H2010. Worries of inflation prevailed as subsidy on white bread was cut and the price of sugar was raised. While there was limited impact on the market, arson and vandalism attacks on houses of worship in Malaysia gave rise to some concerns but these have gradually faded. Table 1: Total returns YTD Country Change(%) Country Change (%) China -8.8 Malaysia -1.0 Hong Kong -8.0 Indonesia 3.0 Japan -3.3 Thailand -5.8 Korea -4.8 Philippines -3.2 Singapore -5.2 Taiwan -6.7 Source: Bloomberg Note: TRs (total returns), CG (capital gain) & DY (div yield) SECTORAL: BANKS AND PROPERTY Banks grab the headlines. For January, the PM s visits to China and Saudi Arabia to cement ties appeared to be paying off as Petrosaudi International announced that it would raise its stake in UBG to 89.9%, thus triggering a General Offer at RM2.50 per share. At the same time, the State Grid corporation of China signed a JV with 1Malaysia Development Berhad to invest to the tune of USD11bn in projects in the SCORE. Other than this, banks remained in the limelight, with Hong Leong making an offer for the assets and liabilities of EON Cap equivalent to RM7.10 per share, an offer deemed too low by EON Cap s board of directors. Alliance Bank also received a reply from its CEO, Datuk Bridget Lai, with regard to its ongoing internal probe while DRB-Hicom is looking to divest its stake in Bank Muamalat. On the property side, Sunrise entered into a historic 50:50 JV with Sime Darby to develop 3 plots of freehold commercial land measuring acres in the 180-acre Bukit Jelutong area, with an estimated GDV of RM1bn, over a period of 7 years. Sunway also entered into a JV with Templer Forest for a property development project in Rawang worth RM500m. Other corporate highlights were: The contract of Khazanah Nasional's CEO Tan Sri Azman Mokhtar has been renewed for another three years to 31 May 2013; 3 candidates are tipped to take over as CEO of Petronas - Datuk Shamsul Azhar, Datuk Anuar Ahmad and Datuk Wan Zulkiflee Wan Ariffin; The Naza group signs a MOU with General Motors to distribute Chevrolet cars in Malaysia; Resorts World Sentosa starts a phased opening of its hotels; KPJ Healthcare buys a 51% stake in Sabah Medical Centre for RM51m; AirAsia signs a cost savings cooperation agreement with Jetstar; Petra Perdana CEO suspends some senior management up till 3 Feb before the 4 Feb EGM; Coastal Contract announcing a tie up with Ramunia to collaborate on fabricating offshore structures; SapuraCrest s 40%-owned Offshore International FZC was awarded a USD75m sub-contract from Larsen & Toubro Ltd for the transportation and installation of 4 platform jackets offshore Mumbai; UEM Land proposes rights issue to raise RM970m; Gadang receives RM291m contract for the earthworks of KLIA runway 3; Sinohydro-Naim JV wins RM209m contract to build Bakun-Similajau transmission line; Leader Universal secures a USD107m power transmission project in Cambodia; Tan Sri Quek Leng Chan makes a GO for Hume Industries at RM4.30 per share; Affin Bank expected to start talks soon with shareholders of Indonesian PT Bank Ina Perdana to buy a controlling stake; Baswell secures a USD100m subcontract to manufacture furniture and fittings at Al-Reem island, Abu Dhabi. REDtone launches IPTV services; OSK Research See important disclosures at the end of this report 3

4 Tech stocks did well. Although most sectors took a dive towards month-end, the tech sector did well on expectations of stronger earnings going forward. Other than tech, Gamuda led construction stocks higher while Astro led the charge among media companies. Rubber glove players did well enough in that they still posted full month gains despite the strong profit taking at month-end. Table 2: FBM 100 gainers and losers During The Month of Jan-10 Top 20 Gainers TR Top 20 Losers TR MALAYSIAN PACIFIC INDUSTRIES 17.94% KPJ HEALTHCARE BERHAD % HARTALEGA HOLDINGS BHD 17.36% IGB CORPORATION BHD -9.50% MALAYSIA AIRPORTS HLDGS BHD 15.87% ALLIANCE FINANCIAL GROUP BHD -7.75% TOP GLOVE CORP BHD 11.13% PUNCAK NIAGA HOLDINGS BHD -7.26% GAMUDA BHD 8.91% IJM LAND BHD -7.23% KENCANA PETROLEUM BHD 8.60% O.S.K. HOLDINGS BHD -7.16% MALAYSIAN RESOURCES CORP BHD 7.71% SAPURACREST PETROLEUM BHD -6.45% KFC HOLDINGS (MALAYSIA) BHD 7.57% BOUSTEAD HEAVY INDUSTRIES CO -5.88% AXIATA GROUP BERHAD 7.21% IOI CORPORATION BHD -5.85% ASTRO ALL ASIA NETWORKS PLC 6.67% YTL CEMENT BHD -5.72% AEON CO (M) BHD 5.85% POS MALAYSIA BERHAD -5.41% MEDIA PRIMA BHD 5.39% TENAGA NASIONAL BHD -5.00% PUBLIC BANK BERHAD 5.13% SIME DARBY BERHAD -4.91% JT INTERNATIONAL BHD 4.72% MALAYSIAN BULK CARRIERS BHD -4.66% PARKSON HOLDINGS BHD 4.52% KNM GROUP BHD -4.55% TITAN CHEMICALS CORP BHD 4.10% MUDAJAYA GROUP BHD -4.43% DIALOG GROUP BHD 3.79% MMC CORP BHD -4.12% FRASER & NEAVE HOLDINGS BHD 3.77% BERJAYA CORP BHD -4.07% UBG BHD 3.38% MALAYSIAN AIRLINE SYSTEM BHD -4.04% TANJONG PLC 3.09% GENTING BERHAD -3.95% Source: Bloomberg Note: TRs (total returns), CG (capital gain) & DY (div yield) Figure 2: FBM100 performance by sector TRs of FBM100 Components By Sector Water Utilities Transportation/Logistics Telco Technology Property Plantation Oil & Gas Auto Media Gaming Consumer Construction Conglomerates Building Materials Banking/Financials -15% -10% -5% 0% 5% 10% 15% 20% Total Returns Jan-09 Jan-10 YTD Source: Bloomberg Note: TRs (total returns), CG (capital gain) & DY (div yield) Smaller stocks fared better. Although the market s overall performance was muted due to profit taking in the second half, as a whole the smaller stocks did better given that rubber glove players and tech stocks rallied in the earlier part of the month while foreign profit taking on key blue chips such as banks and plantation companies was evident. OSK Research See important disclosures at the end of this report 4

5 Figure 3: Performance by market capitalisation TRs of FBM100 Components By Mkt Cap 3% 2% 2% Total Returns 1% 1% 0% -1% -1% -2% FBM100 Top 10 11th - 30th 31st - 50th 51th - 75th 76th - 100th YTD Jan-10 Jan-09 Source: Bloomberg Note: TRs (total returns), CG (capital gain) & DY (div yield) More downgrades. We continued to see more downgrades in January as the share prices of many of the companies under our coverage rallied in the 1 st half of the month, thus limiting the upside. Downgrades of this nature included Public Bank, Hock Seng Lee, Malaysia Airports, KFC, New Hoong Fatt, EPMB and Ann Joo. We discontinued NSTP, which will be delisted, and downgraded EONCap given the RM7.10 offer. Notable upgrades are Tan Chong on brighter prospects for its regional business and Kulim, as we raised our CPO price outlook. Figure 4: Notable upgrades and downgrades in January Upgrades Downgrades Company Call Target Price (RM) Company Call Target Price Tan Chong BUY 4.12 Notion Vtec TRADING BUY 3.38 Kulim TRADING BUY 8.78 Hiap Teck NEUTRAL 1.44 UMW NEUTRAL 6.35 KFC NEUTRAL 8.30 Hock Seng Lee NEUTRAL 1.25 Public Bank NEUTRAL New Hoong Fatt NEUTRAL 2.50 EPMB NEUTRAL 0.59 EON Cap NEUTRAL 7.10 Malaysia Airports NEUTRAL 4.22 Ann Joo SELL 2.57 NSTP DISCONTINUE Source: OSK OUTLOOK: VOLATILE DAYS IN YEAR OF THE TIGER Volatility ahead. The caution among our clients which we encountered during our presentations in December and January proved to have been enlightened as the markets did correct sharply. Nonetheless, we continue to believe that the steep correction took many local investors by surprise and we believe trading will be more volatile going ahead as it would be balanced between those expecting quick fiscal tightening and those more focused on improving economic numbers. We continue to believe that given the sharp market correction, there may be a rebound in the month of February and therefore, February would be a good time to pick up high beta small caps. We believe that with the low level of foreign shareholding in the Malaysian market, an expected set of strong 4Q09 earnings and good news in the form of the upcoming New Economic Model to be unveiled in March, it would be better to bargain hunt now rather than switch to a defensive portfolio. OSK Research See important disclosures at the end of this report 5

6 CNY rally a historical truth. Given the usual expectation of a pre Chinese New Year (CNY) rally, we looked at the market s historical performance in the months prior to and post Chinese New Year since We note that the market did tend to perform better prior to CNY, gaining in 10 out of the past 14 years and returning an average 2.8%. In contrast, in the month after CNY, the KLCI only rose in 8 of the past 14 years, with an average gain of only 1.3%. While we are more wary of the performance of the KLCI this February, we believe that the strong results of many small cap companies should help these stocks outperform this month. Figure 5: KLCI gain / loss 1 month prior to CNY 20.00% 15.00% 10.00% 5.00% 0.00% -5.00% % Source: OSK, Bloomberg Figure 6: KLCI gain / loss 1 month post CNY 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% -5.00% % % Source: OSK Results should still be reasonable. As for the upcoming results season for 4Q2009, we still envisage results that are fairly good, with more outperformers than underperformers, and similarly more upgrades than downgrades although the upgrade to downgrade ratio should continue to decline from 3Q09. Comparing OSK s forecasts with consensus and noting that among companies where the difference is more than 5%, we are more bullish on 17 companies than consensus but more bearish on 27 than consensus. We take it to mean than overall OSK is still more conservative than consensus, which reinforces our view that the market may be disappointed by corporate earnings for On a sectoral basis, there are a number of O&G, construction and steel companies for which our forecasts are significantly more conservative than consensus. OSK Research See important disclosures at the end of this report 6

7 Figure 7: Companies where OSK s FY09 profit forecast differ from consensus by more than 5% Company name OSK Forecast FY09 net profit (RMm) Consensus forecast FY09 (RMm) Difference (%) Reason Tanjung Offshore % Variance may stem from uncertainties on loss from its UK subsidiary, Citech Astro % Consensus may have imputed higher content cost asociated with the 2010/11 EPL season Malaysian Bulk Carriers % OSK expects 4Q to remain strong on a still positive BDI Proton % OSK expects a significant reduction in operating efficiencies following the rationalization of its distribution network MAS % Gradual recovery of demand may narrow losses Padini % OSK expects a lower effective tax rate MRCB % OSK is slightly bullish in term of margins assumption Kulim % Consensus has been adjusted down more aggressively after disappointing Axiata % Consensus has probably under-estimated the better showing expected from Celcom and XL Kawan Food % OSK expects more export sales coming from North America KL Kepong % OSK expects stronger production growth Evergreen % OSK expects demand for MDF to pick up this year. Tan Chong % Higher than expected CY09 TIV from Nissan. Backlog in orders to be delivered in Q4 to enhance revenue and earnings. Genting Malaysia 1, , % Higher on positive impact of effective yield management EONCap % Lower effective tax rate to impute deffered tax write backs and higher Islamic banking income Adventa % - New Hoong Fatt % OSK projects higher revenue growth following the recent JV of a new trading arm in early '09 Sime Darby % OSK has a conservative average palm oil price assumption Kencana % Due to lack of orderbook replenishment. BJToto % Lower on slower same draw sales growth due to impact of dilution from numerous special draws Hock Seng Lee % Consensus is more bullish on margin assumptions Amway % OSK has lower margins assumptions Gamuda % Consensus is overly positive on margin recovery, possibilly imputing sales from Yenso as well TRC Synergy % Consensus has probabally not adjusted for the q-o-q decline in earnings trend IJM Corp % Consensus is too bullish on construction margin recovery despite no reversal seen Dialog % Potential cost pressure resulting in margin erosion IOI Corp % OSK has a conservative average palm oil price assumption TM % Consensus is too optimistic on 4Q09 numbers Petra Perdana % Uncertainty in ownership may result in new contracts not being awarded to it JTI % OSK is slightly conservative in terms of bottomline earnings on grounds of higher marketing expenditure Genting Bhd , % Consolidation of higher pre-operating expenses from Genting Singapore KNM % Due to lack of new contracts awards / delivery failure by management IGB Corp % OSK is more conservative in terms of occupancy and rental rates for its investment properties Petra Energy % Possibility of operation interrupted due to uncertainty in ownership of P Perdana AMMB , % Slower loans growth and higher provision charges as we expect more pre-emptive provisions to raise coverage ratios closer to industry average AirAsia % High crude oil price may translate to lower margin in 4Q MAHB % OSK's figures exclude exceptional items MISC % Liner + chemical businesses may still be stuck in losses MMC Corporation % Market still building in expectations of profits from Jazan infrastructure Ann Joo % Sharp pull back of China market in Aug/Sep 2009 shook the domestic steel market in 4Q, thus we expect a q-o-q contraction Kinsteel % Sharp pull back of China market in Aug/Sep 2009 shook the domestic steel market in 4Q, thus we expect a q-o-q contraction Sino Hua An % Unable to offset previous losses due to narrowing margin spread between coke and coal Malaysia Steel Works % Sharp pull back of China market in Aug/Sep 2009 shook the domestic steel market in 4Q, thus we expect a q-o-q contraction Source: Bloomberg, OSK OSK s Top picks underperformed in January. January was a tough month for our top picks, with only 1 outperforming the index, namely Supermax while CIMB was in line. The other 3, namely Mudajaya, TNB and KPJ, underperformed the market as Mudajaya s placement was transacted at a lower price than earlier expected, TNB did not get its tariff hike while KPJ suffered from profit taking after its corporate exercise. Still sticking to Small Caps. Despite the disappointment in January, we are sticking to our small cap stock picks for February, apart from CIMB. We retain all our top picks from January, with the exception of TNB as management had hinted that it is unlikely to secure any tariff adjustment in February. Instead, we replace TNB with Lion Industries, our top pick in the steel sector, as we see the selldown in January as an opportunity to bottom fish for small cap stocks. We maintain CIMB, Mudajaya, KPJ and Supermax as all 4 companies should report strong performance for February. OSK Research See important disclosures at the end of this report 7

8 Figure 8: Normalised performance of January s top stock picks CIMB Mudajaya TNB Supermax 100 KPJ KLCI Nov 07-Dec 14-Dec 21-Dec 28-Dec Source: Bloomberg, OSK Stock Price RM Target RM Mkt Cap RMm Volume 000 PER (x) FY0 FY1 Rel. Performance % FY1 FY2 ROE % DY % 1-mth 3-mth 12mth CIMB , , BUY Mudajaya , BUY Supermax , , BUY Lion Ind , BUY KPJ , , BUY Share price as at 29 Jan 2010, P/NTA (x) Rating OSK Research See important disclosures at the end of this report 8

9 APPENDIX I MARKET CAP RANKING Segment/Sector Ranking Stocks Free float adjusted Market Cap (RM'm) % To KLCI MC Top 10 1 CIMB GROUP HOLDINGS BHD 44, % 2 PUBLIC BANK BHD 41, % 3 SIME DARBY BERHAD 38, % 4 MALAYAN BANKING BHD 36, % 5 TENAGA NASIONAL BHD 25, % 6 IOI CORPORATION BHD 25, % 7 AXIATA GROUP BERHAD 20, % 8 GENTING BERHAD 19, % 9 MISC BHD 13, % 10 MAXIS 12, % TOTAL 279, % 11th - 20th 11 AMMB HOLDINGS BHD 10, % 12 PPB GROUP BERHAD 9, % 13 KUALA LUMPUR KEPONG BHD 8, % 14 TELEKOM MALAYSIA BHD 8, % 15 GENTING MALAYSIA 8, % 16 YTL CORPORATION BERHAD 7, % 17 DIGI.COM BHD 6, % 18 PLUS EXPRESSWAYS BHD 6, % 19 BRITISH AMERICAN TOBACCO BHD 6, % 20 PETRONAS GAS BHD 5, % TOTAL 78, % 21st - 30th 21 YTL POWER INTERNATIONAL BHD 5, % 22 UMW HOLDINGS BHD 5, % 23 HONG LEONG BANK BERHAD 5, % 24 BERJAYA SPORTS TOTO BHD 4, % 25 TANJONG PLC 3, % 26 MMC CORP BHD 2, % 27 PETRONAS DAGANGAN BHD 2, % 28 ASTRO ALL ASIA NETWORKS PLC 2, % 29 NESTLE MALAYSIA BHD 2, % 30 RHB CAPITAL BHD 2, % TOTAL 35, % 393, Source: Bloomberg % APPENDIX II TOTAL RETURNS BY MARKT CAP Absolute FBM KLCI Jan-10 Dec-09 Jan-09 YTD MoM Chg. YoY Chg. Total returns -1.07% 1.62% 0.94% -1.07% -2.69% -2.01% Capital gains -1.07% 1.09% 0.88% -1.07% -2.16% -1.95% Dividend yield 0.00% 0.54% 0.06% 0.00% -0.54% -0.06% Segmental - Market Cap Top 10 Total returns -1.17% 1.98% 2.24% -1.17% -3.16% -3.41% Capital gains -1.17% 1.96% 2.24% -1.17% -3.13% -3.41% Dividend yield 0.00% 0.02% 0.00% 0.00% -0.02% 0.00% 11th - 20th Total returns -0.25% 1.89% -0.09% -0.25% -2.14% -0.16% Capital gains -0.25% 1.87% -0.09% -0.25% -2.12% -0.16% Dividend yield 0.00% 0.02% 0.00% 0.00% -0.02% 0.00% 21st - 30th Total returns -0.13% 1.09% 3.36% -0.13% -1.21% -3.49% Capital gains -0.13% 1.03% 3.23% -0.13% -1.15% -3.36% Dividend yield 0.00% 0.06% 0.13% 0.00% -0.06% -0.13% Source: Bloomberg Weighted Average Total Returns of FBM KLCI Components (Free float adjusted market capitalisation) OSK Research See important disclosures at the end of this report 9

10 APPENDIX III SEGMENTAL TOTAL RETURNS Absolute Segmental - Sector Jan-10 Dec-09 Jan-09 YTD MoM Chg. YoY Chg. Banking/Financials Total returns 0.60% 2.38% 2.90% 0.60% -1.77% -2.30% Capital gains 0.60% 2.38% 2.90% 0.60% -1.77% -2.29% Dividend yield 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Conglomerates Total returns -0.15% 2.35% 4.63% -0.15% -2.50% -4.78% Capital gains -0.15% 2.26% 4.63% -0.15% -2.40% -4.77% Dividend yield 0.00% 0.10% 0.00% 0.00% -0.10% 0.00% Consumer Total returns -1.21% -1.14% 0.11% -1.21% -0.08% -1.32% Capital gains -1.21% -1.14% 0.11% -1.21% -0.07% -1.33% Dividend yield 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Gaming Total returns -2.48% 4.22% -0.37% -2.48% -6.70% -2.10% Capital gains -2.48% 4.20% -0.42% -2.48% -6.67% -2.06% Dividend yield 0.00% 0.03% 0.05% 0.00% -0.03% -0.05% Media Total returns 6.67% -9.72% -3.17% 6.67% 16.39% 9.83% Capital gains 6.67% -9.72% -3.17% 6.67% 16.39% 9.84% Dividend yield 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Auto Total returns -0.81% 0.80% 9.73% -0.81% -1.61% % Capital gains -0.81% 0.80% 9.24% -0.81% -1.61% % Dividend yield 0.00% 0.00% 0.49% 0.00% 0.00% -0.49% Oil & Gas Total returns 0.00% -0.78% 2.08% 0.00% 0.78% -2.08% Capital gains 0.00% -1.23% 2.09% 0.00% 1.23% -2.09% Dividend yield 0.00% 0.45% 0.00% 0.00% -0.45% 0.00% Plantation Total returns -4.60% 1.99% 8.03% -4.60% -6.59% % Capital gains -4.60% 1.99% 8.02% -4.60% -6.59% % Dividend yield 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Telco Total returns 3.44% 2.28% -5.51% 3.44% 1.16% 8.95% Capital gains 3.44% 2.28% -5.51% 3.44% 1.16% 8.95% Dividend yield 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Transportation/Logistics Total returns -1.91% -2.77% 1.52% -1.91% 0.87% -3.43% Capital gains -1.91% -2.77% 1.51% -1.91% 0.87% -3.41% Dividend yield 0.00% 0.00% 0.01% 0.00% 0.00% -0.01% Utilities Total returns -3.75% 1.17% -4.01% -3.75% -4.92% 0.26% Capital gains -3.75% 0.99% -4.01% -3.75% -4.74% 0.26% Dividend yield 0.00% 0.18% 0.00% 0.00% -0.18% 0.00% Source: Bloomberg OSK Research See important disclosures at the end of this report 10

11 APPENDIX IV SEGMENTAL MARKET CAP Segment/Sector Ranking Stocks Free float adjusted Market Cap (RM'm) % To KLCI MC Banking/Financials 1 CIMB GROUP HOLDINGS BHD % 2 PUBLIC BANK BHD % 4 MALAYAN BANKING BHD % 11 AMMB HOLDINGS BHD % 23 HONG LEONG BANK BERHAD % 30 RHB CAPITAL BHD % TOTAL % Conglomerates 12 PPB GROUP BERHAD % 16 YTL CORPORATION BERHAD % 26 MMC CORP BHD % TOTAL % Consumer 19 BRITISH AMERICAN TOBACCO BHD % 29 NESTLE MALAYSIA BHD % TOTAL % Gaming 8 GENTING BERHAD % 15 GENTING MALAYSIA % 24 BERJAYA SPORTS TOTO BHD % 25 TANJONG PLC % TOTAL % Media 28 ASTRO ALL ASIA NETWORKS PLC % TOTAL % Auto 22 UMW HOLDINGS BHD % TOTAL % Oil & Gas 27 PETRONAS DAGANGAN BHD % TOTAL % Plantation 3 SIME DARBY BERHAD % 6 IOI CORPORATION BHD % 13 KUALA LUMPUR KEPONG BHD % TOTAL % Telco 7 AXIATA GROUP BERHAD % 10 MAXIS % 14 TELEKOM MALAYSIA BHD DIGI.COM BHD % TOTAL % Transportation/ 9 MISC BHD % Logistics 18 PLUS EXPRESSWAYS BHD % TOTAL % Utilities 5 TENAGA NASIONAL BHD % 20 PETRONAS GAS BHD % 21 YTL POWER INTERNATIONAL BHD % TOTAL 37, % 393, % Source: Bloomberg OSK Research See important disclosures at the end of this report 11

12 APPENDIX V GENERAL STATISTICS ECONOMICS STATISTICS 1. STOCK MARKET STATISTICS Year Month Composite Index Second Board Index Mkt. Cap. (RM bn) Volume (bn shs) Value (RM bn) Mkt. Cap./ GDP# (%) , , , Jul 1, Aug 1, Sep 1, Oct Nov Dec Jan Feb Mar Apr May 1, Jun 1, Jul 1, Aug 1, Sep 1, Oct 1, Nov 1, Dec 1, Jan 1, n.a n.a. * # GDP Nominal 2. GENERAL ECONOMIC INDICATORS Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 (% annual change or otherwise stated) Industrial Production Index n.a. Manufacturing n.a. Mining n.a. Electricity n.a. External Trade Exports n.a. Imports n.a. Trade Balance (RM bn) n.a. Consumer Price Index BLR of commercial banks ALR of commercial banks Monetary Aggregates M M M Source: BNM OSK Research See important disclosures at the end of this report 12

13 APPENDIX VI OSK KLCI UNIVERSE STOCK/SECTOR NET PROFIT (RM'm) NET MARGIN (%) ROE (%) PER (X) PBV (X) GROSS DIV YIELD (%) C.PRICE TP CALL FY08 FY09 FY10 FY08 FY09 FY10 FY08 FY09 FY10 CY08 CY09 CY10 FY08 FY09 FY10 FY08 FY09 FY10 (RM) (RM) MBM RESOURCES % 5.9% 7.6% 13.8% 7.1% 9.2% % 2.3% 3.4% BUY NEW HOONG FATT % 14.9% 15.2% 11.0% 12.5% 13.2% % 4.7% 6.4% NEUTRAL PROTON HOLDINGS BHD (9.2) (22.1) % -0.3% 3.2% -0.2% -0.4% 4.9% (113.5) % 1.3% 2.6% BUY TAN CHONG MOTOR HLDGS BHD % 5.4% 6.1% 17.6% 11.0% 10.0% % 3.2% 3.2% BUY UMW HLDG BHD % 3.7% 4.5% 16.1% 10.4% 13.6% % 3.8% 5.5% NEUTRAL AUTOMOTIVE SECTOR , % 2.9% 4.5% 8.3% 5.4% 9.0% % 2.5% 3.5% AMMB HLDGS BHD % 14.1% 15.0% 9.2% 10.6% 10.2% % 1.6% 1.9% BUY CIMB BHD 2, , , % 20.7% 22.5% 13.8% 13.0% 14.3% % 2.0% 5.1% BUY EON CAPITAL BHD % 17.5% 13.8% 8.3% 11.3% 9.5% % 0.8% 0.9% NEUTRAL HONG LEONG BANK % 20.1% 19.4% 14.5% 15.7% 15.0% % 2.9% 2.9% BUY MALAYAN BANKING BHD 2, , , % 13.5% 17.7% 14.3% 10.2% 10.3% % 1.2% 3.8% NEUTRAL PUBLIC BANK BHD 2, , , % 21.2% 21.0% 26.2% 25.2% 25.5% % 5.5% 5.9% NEUTRAL RHB CAPITAL BHD , , % 15.4% 16.0% 10.5% 12.9% 13.9% % 3.0% 3.5% BUY KURNIA ASIA BHD (301.8) % 5.0% 11.3% % 27.6% 32.0% (4.0) % 0.0% 0.0% BUY LPI CAPITAL BHD % 17.0% 17.3% 28.7% 15.5% 17.6% % 5.8% 5.8% BUY BANKING SECTOR 10, , , % 17.3% 18.8% 14.2% 13.8% 13.9% % 1.9% 3.2% CHEMICAL CO MALAYSIA % 1.1% 2.1% 19.9% 3.8% 8.3% % 3.7% 3.7% NEUTRAL MMC CORP BHD % 2.9% 5.9% 7.9% 3.9% 7.3% % 1.1% 1.1% TRADING BUY MRCB (56.6) % 3.9% 6.7% -6.2% 3.9% 7.9% N.A % 0.0% 0.0% TRADING BUY FABER GROUP % 9.1% 10.1% 19.2% 17.6% 19.3% % 2.5% 3.1% BUY CONGLOMERATE SECTOR % 3.1% 5.7% 7.3% 4.5% 7.8% % 0.9% 0.9% AHMAD ZAKI % 4.0% 4.5% 8.6% 9.1% 11.5% % 2.6% 3.5% BUY GAMUDA BHD % 7.1% 10.1% 10.5% 6.0% 9.7% % 2.9% 2.9% NEUTRAL HOCK SENG LEE % 11.5% 11.1% 17.2% 18.2% 18.9% % 2.2% 2.7% NEUTRAL IJM (420.5) % 6.3% 6.2% -7.6% 5.2% 6.0% % 4.7% 1.7% NEUTRAL MUDAJAYA GROUP % 14.5% 14.2% 14.6% 26.3% 33.2% % 0.4% 0.7% BUY NAIM HLD % 16.1% 14.4% 11.5% 12.0% 13.0% % 2.1% 2.5% BUY PLUS EXPRESSWAYS 1, , , % 37.6% 38.9% 18.9% 19.6% 19.3% % 5.1% 5.2% BUY TRC SYNERGY BHD % 6.4% 7.4% 17.0% 13.3% 12.8% % 4.6% 4.9% BUY WCT BHD % 6.8% 6.7% 8.7% 10.3% 10.4% % 2.6% 2.8% BUY CONSTRUCTION SECTOR 1, , , % 13.6% 14.1% 7.6% 11.6% 13.2% % 3.5% 3.4% AEON CO (M) BHD % 3.2% 3.3% 13.6% 13.2% 13.1% % 2.3% 2.5% NEUTRAL AMWAY MALAYSIA HOLDINGS % 11.5% 11.8% 40.5% 32.2% 35.0% % 6.3% 6.6% NEUTRAL BRITISH AMERICAN TOBACCO (M) BHD % 19.4% 19.6% 199.5% 154.4% 140.0% % 5.6% 5.9% NEUTRAL BONIA % 6.5% 7.1% 17.0% 11.6% 12.8% % 4.0% 4.5% NEUTRAL CARLSBERG BREWERY (M) BHD % 7.0% 8.4% 16.3% 14.5% 20.6% % 4.9% 5.5% BUY CHEETAH HOLDINGS % 10.7% 10.0% 11.6% 13.8% 13.5% % 5.5% 5.8% BUY ENG KAH CORP BHD % 11.5% 12.4% 13.6% 9.2% 11.0% % 11.5% 7.7% SELL GUINNESS ANCHOR % 11.0% 11.0% 30.6% 32.1% 30.8% % 6.0% 6.3% NEUTRAL HAI-O ENTERPRISE % 12.0% 12.5% 34.5% 31.5% 34.3% % 5.0% 6.0% BUY JT INTERNATIONAL % 8.9% 9.2% 19.8% 32.5% 31.0% % 5.9% 7.1% BUY KAWAN FOOD BHD % 15.5% 12.1% 13.7% 16.5% 16.4% % 2.3% 2.5% TRADING BUY KFC HLDGS (M) BHD % 5.9% 6.3% 17.2% 16.6% 16.4% % 2.7% 3.0% NEUTRAL KIAN JOO CAN FACTORY % 7.3% 7.7% 11.3% 7.6% 8.1% % 5.7% 6.4% NEUTRAL LTKM % 6.7% 9.7% 7.4% 9.5% 12.6% % 5.7% 2.1% NEUTRAL NESTLE (M) % 9.1% 9.2% 66.1% 64.1% 58.9% % 5.3% 5.3% NEUTRAL NTPM HOLDINGS % 12.9% 12.4% 18.8% 22.7% 24.6% % 4.5% 5.2% NEUTRAL PADINI HLDGS % 10.4% 10.7% 25.0% 24.3% 22.8% % 3.6% 4.0% BUY PARKSON HOLDINGS % 10.2% 11.2% 221.0% 213.0% 190.8% % 1.8% 2.2% BUY PELIKAN INTERNATIONAL CORP BHD % 3.9% 4.1% 7.5% 7.6% 12.8% % 1.4% 5.4% BUY QL RESOURCES % 6.4% 6.5% 22.4% 21.4% 19.9% % 2.1% 3.0% BUY CONSUMER SECTOR 2, , , % 9.3% 9.3% 30.0% 27.4% 27.2% % 3.4% 3.7% Source: Bloomberg, OSK OSK Research See important disclosures at the end of this report 13

14 APPENDIX VII OSK KLCI UNIVERSE (Cont d) STOCK/SECTOR NET PROFIT (RM'm) NET MARGIN (%) ROE (%) PER (X) PBV (X) GROSS DIV YIELD (%) C.PRICE TP CALL FY08 FY09 FY10 FY08 FY09 FY10 FY08 FY09 FY10 CY08 CY09 CY10 FY08 FY09 FY10 FY08 FY09 FY10 (RM) (RM) BERJAYA SPORTS TOTO BHD % 11.9% 11.6% 28.3% 32.5% 34.1% % 7.6% 8.3% BUY GENTING BHD 1, , % 11.4% 11.7% 9.0% 6.6% 9.1% % 2.1% 2.1% TRADING BUY GENTING MALAYSIA BHD 1, , , % 28.1% 26.8% 15.3% 12.9% 10.9% % 2.9% 3.2% NEUTRAL TANJONG PLC % 12.4% 13.4% 15.1% 14.5% 15.2% % 6.0% 6.3% BUY GAMING SECTOR 3, , , % 15.3% 14.6% 12.8% 10.9% 11.5% % 2.5% 2.7% ASTRO ALL ASIA NETWORKS PLC (6.2) (529.2) % -17.8% 8.4% -0.4% -66.2% 27.5% N.A % 5.8% 3.1% BUY STAR PUBLICATION (M) BHD % 14.1% 16.0% 10.9% 9.2% 10.5% % 7.1% 7.1% SELL MEDIA SECTOR (416.8) % -11.1% 9.9% 4.6% -20.6% 18.3% % 3.2% 3.2% ALAM MARITIM RESOURCES % 26.3% 29.9% 19.3% 19.3% 21.5% % 0.8% 1.1% BUY COASTAL CONTRACT % 33.5% 32.8% 31.4% 32.3% 24.9% % 1.0% 1.0% BUY DIALOG GROUP BHD % 8.3% 8.8% 18.9% 19.5% 19.3% % 2.6% 3.6% BUY EASTERN PACIFIC % 16.2% 15.8% 9.0% 12.2% 11.6% % 7.9% 8.8% BUY KENCANA PETROLEUM BHD % 7.1% 8.7% 28.4% 29.2% 27.8% % 0.6% 1.3% BUY KNM GROUP BHD % 11.0% 11.2% 17.6% 11.8% 13.5% % 1.7% 2.0% BUY PETRA ENERGY % 5.5% 7.3% 14.4% 7.4% 10.0% % 1.3% 1.3% NEUTRAL PETRA PERDANA BHD % 4.3% 7.2% 14.6% 5.3% 9.2% % 1.8% 2.1% NEUTRAL TANJONG OFFSHORE % 1.1% 5.1% 9.9% 2.1% 9.4% % 3.5% 5.3% SELL WAH SEONG CORP BHD % 5.3% 6.4% 14.6% 13.9% 15.8% % 3.2% 3.2% BUY OIL & GAS SECTOR , % 9.1% 10.3% 17.3% 14.6% 16.1% % 1.3% 1.6% GENTING PLANTATIONS BHD % 26.5% 33.6% 15.9% 8.9% 11.2% % 1.4% 1.4% SELL IJM PLANTATIONS % 25.1% 23.6% 18.3% 14.8% 9.4% % 3.3% 2.3% SELL IOI CORP BHD 1, , , % 10.1% 11.0% 23.1% 17.7% 17.4% % 1.6% 2.5% SELL KUALA LUMPUR KEPONG 1, % 10.0% 17.6% 18.7% 11.8% 13.7% % 2.4% 2.8% SELL KULIM MALAYSIA % 6.2% 8.8% 10.0% 5.6% 8.3% % 2.8% 2.8% TRADING BUY SIME DARBY 3, , , % 7.1% 8.5% 15.8% 10.0% 11.3% % 2.4% 1.6% SELL PLANTATION SECTOR 7, , , % 8.6% 10.5% 17.3% 11.4% 12.6% % 1.6% 1.5% AXIS REIT % 86.2% 59.4% 14.2% 11.1% 8.9% % 8.1% 8.3% NEUTRAL BANDAR RAYA DEVELOPMENTS BHD % 10.2% 9.4% 5.2% 7.3% 4.6% % 2.0% 2.0% NEUTRAL HEKTAR REIT % 42.8% 42.9% 15.0% 9.1% 9.2% % 9.2% 9.5% BUY HUNZA PROPERTY % 30.0% 27.5% 15.8% 8.5% 10.4% % 6.0% 7.5% NEUTRAL IGB CORP BHD % 21.0% 21.3% 5.8% 4.8% 4.9% % 1.4% 1.4% NEUTRAL PLENITUDE BHD % 21.8% 21.6% 13.4% 11.9% 7.7% % 4.3% 4.3% NEUTRAL SP SETIA BHD % 12.1% 12.3% 10.8% 7.2% 8.2% % 4.2% 4.2% NEUTRAL SUNRISE BHD % 17.0% 17.4% 21.1% 14.0% 13.6% % 1.4% 1.8% NEUTRAL UM LAND (3.2) % 9.1% 9.3% -0.4% 2.1% 2.5% (111.8) % 1.7% 1.7% BUY YNH PROPERTY BHD % 22.7% 22.0% 12.5% 8.7% 9.5% % 1.8% 4.3% BUY PROPERTY SECTOR % 16.8% 16.7% 9.3% 7.5% 7.1% % 2.4% 2.6% ADVENTA BHD % 16.8% 15.0% 12.5% 25.7% 27.7% % 1.7% 2.0% BUY HARTALEGA HLDGS % 19.1% 25.3% 38.8% 33.1% 36.4% N.A. 1.1% 1.6% BUY KOSSAN RUBBER INDUSTRY % 6.4% 10.3% 19.8% 17.9% 24.6% % 2.0% 2.1% BUY SUPERMAX % 10.5% 11.5% 10.8% 21.7% 20.9% % 0.8% 0.8% BUY TOP GLOVE CORP BHD % 11.0% 12.2% 16.2% 20.5% 21.5% % 1.2% 1.3% BUY RUBBER GLOVES SECTOR % 11.1% 13.2% 17.5% 22.3% 24.4% % 0.9% 1.1% Source: Bloomberg, OSK OSK Research See important disclosures at the end of this report 14

15 APPENDIX VIII OSK KLCI UNIVERSE (Cont d) STOCK/SECTOR NET PROFIT (RM'm) NET MARGIN (%) ROE (%) PER (X) PBV (X) GROSS DIV YIELD (%) C.PRICE TP CALL FY08 FY09 FY10 FY08 FY09 FY10 FY08 FY09 FY10 CY08 CY09 CY10 FY08 FY09 FY10 FY08 FY09 FY10 (RM) (RM) ANN JOO RESOURCES BHD % 1.7% 6.8% 15.7% 2.7% 13.5% % 0.7% 3.7% NEUTRAL CSC STEEL % 6.2% 5.5% 8.5% 8.7% 9.1% % 6.2% 6.9% TRADING BUY KINSTEEL BHD 37.4 (10.4) % -0.5% 3.8% 4.7% -1.3% 12.2% 25.7 (92.5) % 0.0% 1.6% NEUTRAL KKB ENGINEERING % 20.7% 23.1% 7.5% 22.6% 30.0% % 3.9% 5.6% BUY LION INDUSTRIES CORP BHD (257.6) % -5.4% 5.1% 28.4% -9.3% 10.0% % 0.0% 0.6% BUY MALAYSIA STEEL WORKS 79.3 (10.3) % -1.6% 6.0% 18.4% -2.5% 10.4% 2.7 (20.6) % 0.0% 3.0% BUY PANTECH GROUP % 11.7% 9.8% 23.4% 34.3% 31.4% % 2.3% 2.7% NEUTRAL PERWAJA (118.6) % -8.2% 6.1% 15.5% -12.7% 12.3% 5.1 (7.0) % 0.0% 2.1% TRADING BUY SINO HUA-AN % 0.1% 8.3% 0.1% 0.2% 15.9% % 0.1% 6.2% BUY SOUTHERN STEEL % 0.8% 6.3% 13.8% 2.2% 19.3% % 6.6% 70.2% BUY STEEL SECTOR 1,489.4 (198.5) 1, % -1.3% 6.0% 17.1% -2.4% 12.9% % 1.0% 8.8% CBS TECHNOLOGY % 19.6% 19.7% 18.4% 24.4% 23.3% % 0.0% 0.0% BUY EFFICIENT E-SOLUTION % 26.3% 25.2% 19.1% 17.7% 16.7% % 0.0% 0.0% BUY ENG TEKNOLOGI % 7.5% 7.8% 10.9% 12.6% 15.6% % 4.7% 7.8% BUY JOBSTREET % 27.7% 28.2% 29.6% 20.4% 18.1% % 2.2% 2.2% NEUTRAL MALAYSIAN PAC INDUSTRIES BHD (39.9) % -3.5% 7.7% 14.7% -5.7% 13.5% 36.6 N.A % 4.2% 6.3% NEUTRAL NOTION VTEC % 20.9% 23.5% 24.0% 22.0% 25.9% % 2.2% 4.0% TRADING BUY TMC LIFE SCIENCE 3.9 (7.8) % -16.4% 9.2% 3.4% -7.4% 5.1% 55.5 (27.8) % 0.8% 0.8% NEUTRAL UNISEM (M) BHD % 5.3% 5.2% 2.4% 6.3% 6.7% 57.9 N.A % 3.0% 3.6% NEUTRAL TECHNOLOGY SECTOR % 4.2% 9.1% 10.8% 5.5% 12.5% % 2.3% 1.6% AXIATA GROUP 1, , , % 10.0% 13.0% 10.1% 7.3% 9.4% % 0.0% 0.0% BUY DIGI 1, , % 19.7% 20.1% 60.1% 65.4% 93.1% % 8.6% 8.2% NEUTRAL MAXIS 2, , , % 28.7% 28.8% 28.4% 29.8% 29.6% % 6.7% 7.0% BUY TELEKOM MALAYSIA % 5.5% 5.7% 6.8% 6.3% 6.9% % 8.3% 8.3% NEUTRAL TELECOMMUNICATION SECTOR 5, , , % 14.9% 16.0% 16.8% 14.8% 16.2% % 4.0% 4.0% AIRASIA BHD % 12.7% 9.0% 10.5% 14.4% 10.4% % 0.0% 0.0% SELL BINTULU PORT HLD % 29.8% 33.2% 17.1% 15.0% 17.7% % 5.6% 6.1% NEUTRAL CENTURTY LOGISTIC % 8.6% 8.9% 7.8% 11.4% 11.9% % 2.4% 4.2% NEUTRAL FREIGHT MANAGEMENT % 5.9% 5.5% 16.3% 16.2% 15.4% % 6.2% 6.8% NEUTRAL MALAYSIA AIRPORT HLDGS BHD % 15.1% 15.8% 8.5% 8.0% 9.0% % 3.3% 3.4% NEUTRAL MALAYSIAN AIRLINE SYSTEM BHD (839.8) % -7.8% 1.3% 5.8% % 17.5% 22.2 (0.4) % 0.0% 0.0% SELL MALAYSIAN BULK CARRIERS BHD % 65.6% 54.5% 8.9% 10.6% 9.0% % 5.9% 4.8% NEUTRAL MISC BHD 2, , % 8.9% 5.9% 11.8% 6.7% 4.1% % 2.6% 4.5% TRADING BUY NCB HOLDINGS % 16.6% 16.4% 8.7% 7.3% 7.9% % 7.1% 8.4% BUY TRANS-ASIA SHIPMENT % 3.1% 4.3% 10.2% 4.1% 6.5% % 4.9% 6.1% BUY TRANS./LOGISTIC SECTOR 3, , , % 5.1% 6.2% 10.4% 5.2% 6.5% % 1.9% 2.7% PETRONAS GAS BHD 1, % 27.2% 28.9% 13.8% 11.6% 11.4% % 5.8% 5.1% NEUTRAL TENAGA NASIONAL BHD 2, , , % 7.5% 10.0% 10.0% 8.3% 10.4% % 2.2% 2.4% BUY UTILITY SECTOR 3, , , % 9.6% 11.9% 10.9% 9.1% 10.6% % 2.6% 2.5% AJIYA BHD % 7.3% 7.6% 13.4% 12.8% 12.9% % 3.5% 4.1% BUY HELP INTERNATIONAL % 16.0% 16.1% 15.9% 17.6% 17.9% % 1.6% 1.8% BUY HOVID % 10.6% 10.3% 8.1% 16.9% 17.8% % 0.0% 0.0% TRADING BUY KPJ HEALTHCARE % 6.6% 6.8% 13.8% 15.0% 15.7% % 10.0% 10.2% BUY LEADER UNIVERSAL % 3.0% 3.4% 13.0% 10.7% 11.7% % 3.3% 4.0% BUY LITRAK HOLDINGS % 34.3% 31.1% 11.3% 24.3% 21.0% % 11.1% 4.0% NEUTRAL PROGRESSIVE IMPACT % 10.1% 20.0% 15.7% 15.1% 39.9% % 4.0% 4.0% BUY PUNCAK NIAGA HLDGS BHD % 8.9% 7.4% 1.8% 11.9% 9.7% % 8.4% 7.2% NEUTRAL YI-LAI % 9.7% 10.7% 6.8% 5.4% 6.1% % 8.3% 9.7% NEUTRAL OTHERS SECTOR % 8.0% 7.8% 8.6% 13.7% 13.5% % 5.2% 3.5% OSK EARNINGS UNIVERSE 43, , , % 10.1% 11.8% 13.5% 11.0% 12.7% % 2.4% 2.9% Source: Bloomberg, OSK OSK Research See important disclosures at the end of this report 15